US Investors May File Claims against BP
BP facing oil spill claims from US investors
BP’s American investors have scored a legal victory after a US judge ruled that the oil company must face fraud allegations over the Gulf of Mexico oil spill.
The cases, filed in Houston months ago, seek to recover any losses incurred by investors who owned ADRs between January 2007 and May 2010, weeks after the spill. "Plaintiffs have sufficiently pleaded facts to demonstrate that BP misrepresented the size of the spill it was prepared to respond to in the Gulf and misrepresented the company’s general spill response capabilities," Judge Ellison said.
Once Europe’s biggest energy company, BP is fighting twin legal battles in America over the spill. The Houston cases allege securities fraud, while others consolidated into a single case in New Orleans that is due to start on February 27 will determine the fines BP and co-defendants Transocean and Halliburton will have to pay, as well as any extra economic damages.